Friday, May 11, 2018

Politicians have to own their economic policies

A good politician (well, a bad one in my eyes) is
someone skilled at being a snake oil salesmen. He or she will maintain their
control by successfully selling constituents on ideas that are absolutely
disjointed from reality. For a perfect example, look at the shameful
grandstanding taken by Democrats last week in regard to the Dresser-Rand
closing.

First, let’s set the table for those unfamiliar
with what’s happening with D-R. The Dresser-Rand factory is in the village of Wellsville
in Allegany County.The village’s
well-being is tied to the successes of the factory and its long -- and
impactful -- history. It has been in operation for more than 100 years, starting
off as the Moose Steam Turbine Company. Dresser bought them in 1985 then, a
year later, Ingersoll-Rand bought Dresser. In 2015, Siemens purchased the
company.

This past February, Siemens made the shocking
announcement that they are closing the Wellsville facility by 2020 and moving
the operations to North Carolina and other domestic plants. This will not only
devastate the 250 families working there, but also the entire Wellsville
community which has benefited from the incredible economic domino effect, taxes,
and charity.

Democratic Senator Charles Schumer and Republican Congressman
Tom Reed as well as local elected officials have undertaken a bipartisan effort
to communicate and work with Siemen’s managers in an order to stave off the
closure. They have been professional in their behavior, outreach and efforts.

Unfortunately, the same can’t be said for other
politicians from Schumer’s side of the aisle.

Early last week, Governor Andrew Cuomo issued an aggressive
letter to the head of Dresser-Rand, indicating closing the Wellsville plant was
“reckless”. It was a “look at what I’m doing for you” statement (albeit a
meaningless one) to the citizens of the village, when it really should have
been a “look at what I did to you” moment (more on that in a bit).

Days later, Congressman Brian Higgins (who doesn’t
have Wellsville in his district) and his associate Nancy Pelosi staged a press
conference in Washington with the machinists union affected by the closure. They
used it to rail against President Donald Trump’s tax cut package, calling it a
corporate scam that’s not keeping jobs in America.

That is where they’re dead wrong. The closure of
the Wellsville plant is not a federal issue -- it’s a state issue. The jobs are
not disappearing nor are they going overseas. They are moving to other states,
places where it is far more attractive to do business thanks to lower taxes,
fewer regulations, and cheaper energy costs. You know, places where you can
actually make money.

I’ve seen it firsthand. I run a factory in New York
and I know how difficult it is. Readers of this column and anyone who’s been on
a plant tour know that my company throws away three-quarters of a million
dollars every year just for the privilege of doing business in the Empire
State. That value is based on higher costs, controlled by government, that our
competitors from other states don’t pay.

The biggest portion of my competitive disadvantage
is the high price of electricity, so it’s no wonder that Dresser-Rand cited that
as one of the primary reasons for the move. As they put it: “Siemens has been making structural adjustments
to manufacturing…to offset…price erosion caused by broad energy market
changes.”

So, the blame should not be put on Trump. It should
be put on Cuomo. He has taken a tanking upstate economy and made it worse for
existing and start-up businesses by introducing, among other things, expensive green
energy mandates, higher minimum wages, paid leave, countless fees and taxes, higher
health insurance costs and new worker scheduling rules while growing an
entitlement system that doesn’t value work (for example, last September there
were 1,000 job openings in Orleans County…and 1,000 county residents collecting
unemployment). All of this only adds to and does not reduce the burden placed
on businesses.

Cuomo shouldn’t be writing letters accusing
corporations of “reckless” actions. Instead, he should look at the reckless
actions he has taken that have driven away entrepreneurs, jobs, and residents.
Similarly, Higgins and Pelosi should not divert the focus away from the real
issue, that a Democratic governor’s economic policies have added uncertainty to
a state’s already-uncertain climate.

I guess the moral to the story is this: Always look
at what a state or federal politician is trying to sell you or rail against
with a discerning eye – Republicans or, in this case, Democrats will all bend
the truth or make a narrative that fits their quest for control.

It’s too bad that the losers – or those being used
-- in such situations always end up being hardworking souls like those in
Wellsville who face the hard reality of what bad public policy has wrought.

From the 14
May 2018 Greater Niagara Newspapers and Batavia Daily News